Where can you find a depreciation expense?

Expert Solution

Depreciation expense is the appropriate portion of a company's fixed asset's cost that is being used up during the accounting period shown in the heading of the company's income statement.

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation.

Depreciation, i.e. a decrease in an asset's value, may be caused by a number of other factors as well such as unfavorable market conditions, etc. Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time

When a long-term asset is purchased, it is often capitalized instead of being expensed in the given period. This is because that asset will generally still be economically useful and generate returns beyond that accounting period, so expensing it in that period will overstate the expense in that period and understate it in all future periods. To avoid this, depreciation expense is used to better match the expense of a long-term asset to the revenue it generates.

There are different methods used to calculate depreciation expense, and the type of depreciation accounting used is generally selected to match the nature of the equipment

jeff jeffy answered 10 months ago

Where can you find TBX5 in the cell's compartment?

using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office 107,000 Depreciation expense...

using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office 107,000 Depreciation expense - plant 197,000 Direct materials inventory, beginning 33,000 Direct materials inventory, ending 28,000 Direct materials purchases 190,000 Direct labor 345,000 Finished goods inventory, beginning 66,000 Finished goods inventory, ending 43,000 Heat and light for plant 23,000 Indirect labor 128,000 Insurance on plant 44,000 Repairs on plant building 34,000 Sales representatives' salaries 258,000 Sales revenue 1,675,000 Supervisor's salary - plant 106,000 Work-in-process inventory, beginning 14,000...

25.Changes in depreciation expense do not affect operating income because depreciation is a non-cash expense. a....

25.Changes in depreciation expense do not affect operating income because depreciation is a non-cash expense. a. True b. False

Earnings before depreciation, interest, and taxes $1,600,000 Depreciation expense

Earnings before depreciation, interest, and taxes $1,600,000 Depreciation expense $100,000 Tax rate 40% Interest expense $10,000 Common dividends paid $200,000 Number of shares of common stock outstanding $500,000 a. 1.79 b. 1.39 c. 3.20 d. 1.20

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An adjusting entry shows a debit to Depreciation Expense. The credit would be to Accumulated Depreciation....

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(a) Explain the purpose of the two accounts: Depreciation Expense and Accumulated Depreciation. (b) What is...

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